Lucid Motors Strikes SPAC Deal To Go Public With $24 Billion Valuation

Lucid Motors reached an agreement to become a publicly traded company through a merger with special-purpose acquisition company Churchill Capital IV Corp., in the largest deal yet between a blank-check company and an electric vehicle startup.

The combined company, in which Saudi Arabia’s sovereign fund will continue to be the largest shareholder, will have a transaction equity value of $11.75 billion. Private investment in the public equity deal is priced at $15 a share, putting the implied pro-forma equity value at $24 billion. The announcement comes more than a week after Bloomberg, citing unnamed sources, reported a deal was close to being finalized.

Lucid follows a string of other, albeit smaller-valued, SPAC mergers with electric vehicle startups that have been announced this year, including Arrival, Canoo, Fisker and Lordstown Motors. Several EV infrastructure companies including EVgo and ChargePoint have also become public companies via SPAC mergers.

Lucid might have been the most anticipated. The hype and speculation that has been rampant for weeks drove up the stock price of Churchill Capital IV Corp. from its opening price of $10 a share more than 470% since January 2021. The skyrocketing share price plummeted more than 30% after the details of the deal were announced.

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The private investment and cash from Churchill will provide roughly $4.4 billion in total funding to Lucid. That capital will be put to work to speed up and expand Lucid’s plans. The company plans to begin production and deliveries of the Lucid Air in North America in the second half of this year — that’s a notable slip in the timeline; the company previously had aimed to begin deliveries this spring. The Air will come to Europe in 2022, followed by China in 2023. The Gravity performance luxury SUV is expected to come to market in North America in 2023. The vehicles will be produced at its new factory in Casa Grande, Arizona.

The subsidizing will be accustomed to offer those two vehicles for sale to the public just as to extend its plant in Arizona, Lucid CEO and CTO Peter Rawlinson said Monday. The organization intends to extend the manufacturing plant over another three stages in the coming a very long time to have the ability to create 365,000 units each year at scale. The underlying period of the $700 million industrial facility was finished before the end of last year and will have the ability to create 30,000 vehicles per year.

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The arrangement will likewise assist Lucid with understanding its vision to supply electric vehicle innovations to outsiders, like other auto makers, just as offer energy stockpiling arrangements in the private, business and utility fragments, Rawlinson said.

Scaling an electric vehicle organization isn’t modest or simple. Clear barely missed collapsing quite a while back as it battled to discover a financial backer that would give the capital it expected to bring its super luxury electric Air car into creation. That financial backer wound up being Saudi Arabia’s sovereign abundance reserve, which concurred in September 2018 to put $1 billion into Lucid Motors.

Clear started in 2007 as Atieva, an organization established by previous Tesla VP and board part Bernard Tse and business person Sam Weng that zeroed in on creating electric vehicle battery innovation. The early examination, advancement, and possible advancement in the parts and generally speaking electric engineering would lay the basic preparation for the future Lucid, which arose toward the finish of 2016 with the new openly expressed reason to make electric vehicles (albeit the organization had just been working discreetly at this two or three years). Rawlinson, who left Tesla to join Lucid in 2013 as CTO, was one of the main thrusts behind this new mission. He later took on the CEO title and duty also.

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While Lucid is frequently framed as a contender to Tesla, Rawlinson has revealed to TechCrunch the Air is intended to be an adversary of the Mercedes S Class, the inner burning motor lead of the German automaker. The financial backer introduction delivered Monday echoes Rawlinson’s prior remarks, noticing that “Tesla is imaginative however not extravagance.” Lucid portrays itself as “post extravagance” and in rivalry with “set up extravagance” brands Audi, BMW, and Mercedes-Benz.

Clear is removing a page from Tesla’s playbook and laid out designs to at last offer more-reasonable EVs once it scales creation.

Rawlinson will stay as CEO and CTO. The arrangement is required to shut in the subsequent quarter.

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